Question

list and explain the major components of compliance , risk management, and internal programs

Answer 1

Answer:

major components of compliance:

The 4 Common Elements of Successful Compliance Management Systems. ...

compliance Program – A formal, written compliance program with policies/procedures, training, monitoring and corrective action. A Consumer Complaint Management Program – Responsive to complaints and inquiries (defines, tracks, monitors, and analyzes).

1. Board of Directors and Management Oversight – Communicate clear expectations, adopt clear policies, and define an appropriately staffed compliance function.

2. A Compliance Program – A formal, written compliance program with policies/procedures, training, monitoring and corrective action.

3. A Consumer Complaint Management Program – Responsive to complaints and inquiries (defines, tracks, monitors, and analyzes).

4. An Independent Compliance Audit – Review if policies and standards are being implemented.

the major components of risk management:

Risk management is the identification, assessment and prioritization of risks and the subsequent coordinated and economical application of resources to minimize, monitor and control the probability and impact of losses. Effective risk management activities create value and should be an integral part of the decision-making process.

Three Components of Effective Risk Management. Risk management is the identification, assessment and prioritization of risks and the subsequent coordinated and economical application of resources to minimize, monitor and control the probability and impact of losses.

Assessment

Identifying risk is the first and most important element to determine when creating the risk management strategy. Having a clear overview of the possible challenges allows the leadership team to create an effective action plan. Here the three main questions that should be answered are: “What could happen?”; “How it may happen?”; and “What is the worst possible outcome?”. The risk assessment process is of critical importance and provides quality information to the decision-makers in startup management.

Measurement

It is difficult to measure risk, but it is even more challenging to create a strategy to manage something that can’t be or isn’t properly measured. The entrepreneurs must concentrate on embracing the most suitable for their business situation measurement methodologies. The evaluation of the likelihood of a certain situation to occur and the estimation of the possible extension of its occurrence are key components of every risk management strategy.

Monitoring

Risk monitoring is very important because it gives information about the execution of the plan and its effectiveness and gives a good insight into the way the risk has developed or changed over time. By monitoring and evaluating the strategy, the entrepreneurs are able to get better insights into their work that will help them to adopt an adequate course of action that fits their company goals and specific circumstances.

the major components of internal programs:

“effective” internal control system, the following five components work to support the achievement of an entity’s mission, strategies and related business objectives.

1. Control Environment

• Integrity and Ethical Values
• Commitment to Competence
• Board of Directors and Audit Committee
• Management’s Philosophy and Operating Style
• Organizational Structure
• Assignment of Authority and Responsibility
• Human Resource Policies and Procedures

2. Risk Assessment

• Company-wide Objectives
• Process-level Objectives
• Risk Identification and Analysis
• Managing Change

3. Control Activities

• Policies and Procedures
• Security (Application and Network)
• Application Change Management
• Business Continuity/Backups
• Outsourcing

4. Information and Communication

• Quality of Information
• Effectiveness of Communication

5. Monitoring

• Ongoing Monitoring
• Separate Evaluations
• Reporting Deficiencies

These components work to establish the foundation for sound internal control within the company through directed leadership, shared values and a culture that emphasizes accountability for control. The various risks facing the company are identified and assessed routinely at all levels and within all functions in the organization. Control activities and other mechanisms are proactively designed to address and mitigate the significant risks. Information critical to identifying risks and meeting business objectives is communicated through established channels up, down and across the company.

*Hope this is helpful to you, thank you & rate.